New Delhi: With the government affecting a steep hike of over nine per cent in aviation turbine fuel (ATF) prices, airlines may increase ticket prices.
"With the price of Aviation Turbine Fuel (ATF) increasing by a steep 9.2 per cent, this could result in an increase in airfares as fuel constitutes approximately 40 per cent of an airline's operating costs," said Sharat Dhall, president of travel portal Yatra.com.
Fuel cost accounts for about 40-50 per cent of the operating expenditure for airlines in India.
Flying has already become costlier from today following the introduction of a new tax. Finance Minister Arun Jaitley had in his Budget for 2016-17 proposed a 0.5 per cent 'Krishi Kalyan' cess on all taxable services, which came into effect from June 1.
In the fourth straight monthly increase in rates on global cues, the ATF price in Delhi was hiked by Rs 3,945.47 per kilolitre, or 9.2 per cent, to Rs 46,729.48 per kl, from June 1.
The hike came on back of a 1.5 per cent increase effected on May 1 and a steep Rs 3,371.55 (8.7 per cent) hike on April 1.
Prior to that, rates were hiked by steep 12 per cent, or Rs 4,174.49, on March 1.
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"With the price of Aviation Turbine Fuel (ATF) increasing by a steep 9.2 per cent, this could result in an increase in airfares as fuel constitutes approximately 40 per cent of an airline's operating costs," said Sharat Dhall, president of travel portal Yatra.com.
Fuel cost accounts for about 40-50 per cent of the operating expenditure for airlines in India.
Flying has already become costlier from today following the introduction of a new tax. Finance Minister Arun Jaitley had in his Budget for 2016-17 proposed a 0.5 per cent 'Krishi Kalyan' cess on all taxable services, which came into effect from June 1.
In the fourth straight monthly increase in rates on global cues, the ATF price in Delhi was hiked by Rs 3,945.47 per kilolitre, or 9.2 per cent, to Rs 46,729.48 per kl, from June 1.
The hike came on back of a 1.5 per cent increase effected on May 1 and a steep Rs 3,371.55 (8.7 per cent) hike on April 1.
Prior to that, rates were hiked by steep 12 per cent, or Rs 4,174.49, on March 1.
To Read the News in Full
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